MedLab Seeks Ch. 11 Amid Medicare Reimbursement Cuts

Law360, Wilmington (October 28, 2013, 8:56 PM EDT) -- Laboratory Partners Inc., also known as MedLab, a group of about a half-dozen companies that provide clinical laboratory and anatomic pathology services, filed for Chapter 11 protection late Friday in Delaware, citing Medicare and other reimbursement reductions that cut into earnings and liquidity.

The company said in its filings it is hoping to restructure its $42 million in debt and sell some its assets, possibly in two bankruptcy auctions, but as of the petition date had not yet secured stalking horse deals.